Financial information related to Ebony Interiors for February and March 2016 is as follows:
|
Cash
|
320,000
|
380,000
|
|
Accounts receivable
|
800,000
|
960,000
|
|
Supplies
|
30,000
|
35,000
|
|
Accounts payable
|
310,000
|
400,000
|
|
Common stock Retained earnings
|
200,000
|
200,000
|
February 29, 2016 March 31, 2016
a. Prepare balance sheets for Ebony Interiors as of February 29 and March 31, 2016.
b. Determine the amount of net income for March, assuming that no additional common stock was issued and no dividends were paid during the month.
c. Determine the amount of net income for March, assuming that no additional common stock was issued, but dividends of $50,000 were paid during the month.